EXHIBIT 10.7
CONFIDENTIAL
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2000 OFFICER SHORT-TERM
INCENTIVE PLAN FINANCIAL
PERFORMANCE MEASURE
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NOMINATING AND COMPENSATION
COMMITTEE OF THE BOARD OF DIRECTORS
MARCH 2, 2000
[LOGO of PG&E Corporation]
2000 OFFICER STIP FINANCIAL PERFORMANCE MEASURE
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BACKGROUND
SHORT-TERM INCENTIVE PLAN STRUCTURE
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- - At its meeting on September 15, 1999, the Nominating and Compensation
Committee reviewed and approved the 2000 Short-Term Incentive Plan (STIP)
structure for officers of the Corporation and each subsidiary. The structure
established the weighting of corporate earnings per share (EPS), subsidiary
EPS, and other performance factors for officers. The structure requires and
implementing methodology to link the EPS performance levels to threshold,
minimum, and maximum incentive payout levels, which is contained in this
document.
2000 0FFICER STIP FINANCIAL PERFORMANCE MEASURE
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2000 SHORT-TERM INCENTIVE PLAN STRUCTURE
OFFICER GROUP AWARD COMPONENT WEIGHT PERFORMANCE MEASURE
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PGE&E Corporation Corporate Financial Performance 100% Corporate EPS from operations
President & CEO, PG&E Corporate Financial Performance 25% Corporate EPS from operations
National Energy Group Subsidiary Performance 75% Average STIP rating of respective
President & CEO, subsidiary(ies)
Pacific Gas and Electric
Company
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Pacific Gas and Electric Subsidiary Financial Performance 75% Subsidiary contribution to corporate EPS
Company from operations
Subsidiary Operational 25% Financial, operating, and service
Performance measures determined by subsidiary
CEO
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PG&E Gas Transmission PG&E National Energy Group 50 - 100% National Energy Group contribution to
PG&E Energy Trading Financial Performance corporate EPS from operations
PG&E Energy Service
PG&E Generating Corporate Financial Performance 0 - 25% Corporate EPS from operations
Subsidiary Operational/Financial 0 - 50% Financial, operating, and service
Performance measures determined by President &
CEO, PG&E National Energy Group
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